Bitcoin Approaches September with Historical Negative Trends and Fed Meeting Ahead

Bitcoin is experiencing volatile trading as it approaches the end of August, currently priced around $112,900. Market dynamics are influenced by upcoming Federal Reserve meetings and historical seasonal trends.

Key Points

September has historically been a weak month for Bitcoin, averaging a negative return of about 3.8% over the past 12 years.
Despite September's poor performance, in 2023, Bitcoin rose 3.9%, with a further increase of 7.3% in 2024.
Market expectations suggest an 85-90% chance of a Fed rate cut at the September 16-17 meeting, although officials emphasize decisions will be data-driven.
Upcoming inflation data releases on August 29 (PCE) and September 11 (CPI and PPI) could significantly impact market sentiment ahead of the Fed meeting.
Traders may reduce risk during September due to thin liquidity while preparing for potential Q4 gains.

Current Bitcoin price is approximately $113,049.